HomeMy WebLinkAboutLate Comers Agreement with Farwest, LLC for Linder Road Water Line Extension 2LINDER ROAD WATER LINE EXTENSION'
LATE COMERS AGREEMENT
This Agreement made and entered into this 16-1~day of J~ ,2003, by
and between FARWEST LLC, an Idaho Limited Liability Company, hereafter refeued to as
"Farwest", and the CITY OF MERIDIAN, hereinafter refeued to as "City."
WITNESSETH:
WHEREAS, the City limits extend North of McMillan Road, but prior to this Agreement
and the construction referred to herein, such area was not provided water service by the City;
and
WHEREAS, Farwest constructed a water line from an existing water line to an area
North of McMillan Road and in Linder Road as shown in "Exhibit A", which water lines are able
to provide service to land North and South of McMillan Road to the land shown in Exhibit "A"
which is attached hereto and by this reference incorporated as if set forth in full; that the Total
Service Area is approximately 369.36 acres which, if developed under the land use density
projections shown on Exhibit "8", which is attached hereto and by this reference incorporated
herein as if set forth in full, with land use densities shown on Exhibit "8", there would be a total
of 1,075 equivalent residential units (ERU) in the 369.36 acres; and
WHEREAS, Farwest and Paramount LLC, owners of another development within the
aforementioned Total Service Area, have already made separate arrangements for Paramount to
reimburse Farwest for a share of the cost of construction of the aforementioned water line, and to
share in the amounts collected by Farwest under this Late Comers Agreement, such that Farwest
and Paramount properties shall be collectively referred to herein as "Farwest Properties" for
convenience purposes, which properties collectively consist of 390 ERU and that on the land not
included in the Farwest Properties, there would be 686 ERU; and
WHEREAS, the water line constructed by Farwest will benefit land other than only the
Farwest Properties; that the land that can be served by the said water line is shown in Exhibit
"A"; that the developable land that can be served by the water line could contain 1,075 ERU's;
that the existing developed areas that eventually connect to the water line serviced by the City
LINDER WATERLINE LATE COMERS AGREEMENT
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will be subject to the latecomer fees described herein; that sixty-eight percent (68%) of the land
not included in the Farwest Properties would be developed in ten years, the term that a
Latecomers Agreement is allowed to run by law, and
WHEREAS, the total cost of constructing the said water line borne by Farwest was, is or
will be $266,096.45; and the water line will benefit the Farwest Properties which could contain
390 ERU's, or 36.23% of the total area to be benefited by the construction of the water line;
therefore the cost to Farwest to construct the water line to and through his own subdivision(s)
would be $96,404.25; that by subtracting this amount as the total Farwest's cost share, the total
cost to all latecomers is $169,692.20; and then dividing by 68% of the remaining number of
ERU's that could be served by the water line; and then adding 10% for City Administration Cost,
there should be a latecomers fee of$400.73, plus interest, per ERU as shown in Exhibit "C"; and
WHEREAS, Section 9-1-13 of the Water Ordinance provides that the City may enter into
water line extension and reimbursement agreements and that section further provides that water
users who subsequently counect to the extended water line(s) shall be charged an eight (8) inch
diameter water line equivalency fee; said fees are in addition to the connection and user charges
normally assessed a user due to the fact the user has not contributed to the cost of the extended
line; the above fee is hereafter referred to as "Late Comer Fee"; the above ordinance section
provides that the late comers fee may be used to reimburse the person or persons so extending
the water line(s),
WHEREAS, pursuant to Section 9-1-12 of the Water Ordinance, the City is required to
charge a Water Construction Equivalency Fee to any person or property owner who has not
otherwise paid for, or contributed proportionately toward, the costs and expenses of constructing
a water line, whether that construction has been performed by the City, a local improvement
district or a private entity, or combination thereof, and who subsequently desires to connect to
the City water system, shall be required to pay an additional connection charge which shall be
known and referred to as the "Water Construction Equivalency Fee".
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
I. The above recitals are contractual and are incorporated herein as if set forth in
fulL
LINDER WATERLINE LATE COMERS AGREEMENT
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2. That Farwest has paid or will pay for engineering, planning and construction of
the water line shown in Exhibit "A", and which will benefit the land also shown in Exhibit "A".
3. Farwest has contributed or will contribute $266,096.45 to total construction costs
of the said water line, of which Farwest is entitled to be reimbursed the sum of$169,692.20 plus
interest, which represents land that could be served by the water line but is not included in
Farwest Properties.
4. That for all land in Exhibit "A" subsequently connecting to the water line referred
to in Exhibit "A", except the land in the Farwest Properties, the City will charge the sum of
$400.73 plus interest, per ERU as shown in Exhibit "C"; such users shall hereafter be referred to
as "LATE COMERS"; that the charge is the Water Construction Equivalency Fee authorized in
section 9-1-12 and established by this Agreement, which fee shall herein be referred to as
"LATE COMERS FEE"; the fee is in addition to any other water charges for connection to the
water system; the computation of the Late Comers Fee is shown on Exhibit "C" attached hereto
and by this reference incorporated herein.
5. That all the late comer fees assessed above in Paragraph 4 shall be set aside and
deposited to a special account to be designated the "LINDER WATER LINE EXTENSION
PROJECT REIMBURSEMENT ACCOUNT" and shall reflect interest at a rate of 6% to be
accrued on the unpaid balance once a year at the City's Fiscal Year End (9/30) each year for the
term of the agreement, and shall be distributed quarterly to Farwest.
6, That the latecomer fees assessed, which will go into the LINDER WATER
LINE EXTENSION PROJECT REIMBURSEMENT ACCOUNT, shall increase at a rate of
6% per annum as shown in Table I of Exhibit "D".
7.
That the late comer fees shall be collected by the City from all users subsequently
connecting to the water line shown in Exhibit "A" for the land also shown in Exhibit "A", except
the land in the Farwest Properties.
8. That the City shall charge the LINDER WATER LINE EXTENSION
PROJECT REIMBURSEMENT ACCOUNT the 10% fee authorized by 9-1-13.
LINDER WATER LINE LATE COMERS AGREEMENT
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9. That the City shall have prepared on an annual basis an audit of all funds
collected pursuant to this Agreement, which audit shall coincide with the general audit of the
City; that the cost of this audit shall be paid by the City as part ofits administrative costs.
10. That the water 1ine(s) referenced in Exhibit "A" is the property of the City and
shall henceforth be maintained by the City at its sole cost and expense.
11. The tenn of this Agreement shall be until Farwest has been reimbursed the
principal sum of $169,692,20, plus interest, as detennined in Paragraph 6 or, if this is not
achieved, for a period of ten (10) years or, until such time the water line described herein is
abandoned. If Farwest has not been reimbursed the principal sum plus interest less
administrative fees after ten (10) years from the date of this Agreement, the Agreement may be
renewed by mutual Agreement of the City and Farwest, at such time as the City ordinance
allows for extension of a ten year time frame. If the City does not amend this ordinance, then
this agreement shall have a ten year life span.
12. This Agreement shall be binding on the assigns and. successors of the parties
hereto.
DATED this
I ¡; -t1. day of
rT~
,2003.
BY:
ATTEST:
Approved By City Council the ~ day of
~j
\
,2003.
(corporate seal)
LINDER WATER LINE LATE COMERS AGREEMENT
Page 4
p~tlb
FARWEST, LLC.
By:
STATE OF IDAHO)
}ss.
County of Ada, )
On this 2~rdday of ~ ' 2003, before me, the undersigned, a Notary
Public in and for said State, p sonally appeared ROBERT D. CORRIE and WILLIAM G,
BERG, JR., known to me to be the Mayor and City Clerk of the CITY OF MERIDIAN, Idaho,
and who executed the within instrument, and acknowledged to me that the CITY OF
MERIDIAN executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
....N'Š...
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(SEAL)
ðrzCtlifY? ~.~
NOTARY PUBLIC FOR IDAHO
Residing at: Ad., Cotu>tlZy Jd~
Commission Expires: 'I ~2fj-O'i
STATE OF IDAHO. )
: ss.
County of Ada.
On this ~ day of JgJ~ ,2003, before me (here insert the
name and quality of the 0 er), personally appeared Bnan F. McColl, known and
identified to me to be the President of Developers Services, Inc., an Idaho corporation
and member of Farwest LLC, that executed the instrument or the person who executed
the instrument on behalf of said limited liability company, and acknowledged to me that
such limited liability company executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
c-==---~ ~ Œh"'~,,,.UW1.)
NOTARY PUBLIC FOR IDAIJQ
Residing at: -{\.~~" ÀW"D
Commission Expires: (ç-~..()~
TEN MILE SEWER LINE LATE COMERS AGREEMENT
Page 5
(SEAL)
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EXHIBIT A
LOCATION OF LINDER WATER LINE AND TOTAL SERVICE AREA
Nt
"d
~. - LINDER WATERLINE
- SERVICE AREA
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EXHIBITB
LATECOMER'S AREA
OWNER
10 PARCEL
1448450438223400 EBBINGHAUS JOHN R JR
14485 50438223250 BRUCK JACK L
14488 50438223100 BRUCK JACK L
1448750438223050 HUFFMAN DONALD R & LINDA
1449250438223440 ENGLl5H BRIAN L &
14493 50438223550 CONVER5E ALAN K &
14494 50438223570 FI5HER FRANK N &
14495 50438223580 FI5HER FRANK N &
14498 50438233880 . YORGASON J RAMON
14583 50435110025 BEWS E L
14589 50435141800 . BRINEGAR E E
1515450428417200 NEL50N CATHERINE L
1515550428417220 LUKEHART BEN W
1515950428449900 FULFER KELLY
1516250428449740 FULFERJACKG
1516350428449850 FULFER KELLY
1516450428449828 FULFER KELLY
15167 50428223000 . HUARTE FAMILY TRU5T
1517850428233700 5TEWART ARCHIE D &
15181 50428233600 KOOYER5 5HERIDAN C
15188 5042S233880 KOOYERS SHERIDAN C
15193 50428328428 GOLDSMITH MARTY
15194 50425325480 . MERIDIAN JOINT 5CHOOL DI5T NO 2
15198 5O42S325800 STRUCKMAN DONN AND
15199 5O42S338040 HANK5 RONALD G &
15201 50425338580 . LEGARRETA FULGENCIO
1520450425338090 LEGARRETA FULGENCIO
. Denotes portion of parcel within latecome~s area
Note: Any parcel less than 1.0 acre not considered for redevelopment end Dssi9ned 1 ERU
ACREAGE ZONECODE
7.320 RUT
1.200 RUT
5.920 RUT
10.300 RUT
4.800 RUT
5.000 RUT
3.820 RUT
1.000 RUT
11.810 RUT
40.000 R-4
11.810 RUT
2.790 RUT
2.480 RUT
19.600 RUT
9.090 RUT
8.440 RUT
1.180 RUT
18.000 RUT
8.000 RUT
1.890 RUT
1.223 RUT
0.888 RUT
37.120 RUT
2.310 RUT
1.140 R1
19.000 RUT
1.000 RUT
230.20
ERU's
per acre
2.80
2.80
2.80
2.80
2.80
2.80
2.80
1.00
2.80
4.00
2.80
2.80
2.80
2.80
2.80
2.80
2.80
2.80
2.80
2.80
2.80
1.00
2.80
2.80
1.00
2.80
1.00
Projected
ERU's
20
3
17
29
13
14
11
1
32
160
32
8
7
S5
25
24
3
42
14
5
3
1
104
8
1
53
1
886
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ID
15139
15145
15146
15149
15153
15176
15168
15182
15190
15200
EXHIBIT B - CONT.
DEVELOPER'S AREA
ERU's Projected
PARCEL OWNER ACREAGE ZONECODE per acre ERU's
. 50426120650 LEROY E BRANDT FAMILY LIMITED LIABILITY PARTNERSHIP 15.00 RUT 2.80 42.00
. 50426244210 GOLD5MITH MARTY 20.00 RUT 2.80 56.00
. 50426244210 GOLD5MITH MARTY
. 50426141810 GOLD5MITH MARTY 20.00 RUT 2.80 56.00
. 50426427810 GOLD5MITH MARTY 33.10 RUT 2.80 92.68
. 50425233605 PARAMOUNT LLC 10.000 RUT 2.80 28
. 50425233690 PARAMOUNT LLC 17.360 RUT 2.80 49
50425233885 PARAMOUNT LLC 2.717 RUT 2.80 8
50425233910 PARAMOUNT LLC 2.300 RUT 2.80 6
50425336080 PARAMOUNT LLC 18.680 RUT 2.80 52
139.16 390
. Denotes portion of parcel witl1in developer's area
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EXHIBIT B - CaNT.
SUMMARY:
Developer's Area Only:
Latecomer's Area Only:
Total Net Benefit Are (inc!. Developer's area)
Acreage
139.16
230.20
369.36
Area Basis
Percentage Developer's: 37.68%
Percentage Latecomer's: 62.32%
ERU's
390
686
1,075
ERU Basis
36.23%
63.77%
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EXHIBIT C
ERU DETERMINATION:
Total Service Area = 369.36 Gross Acres
Latecomer's Service Area = 230.20 Gross Acres
TOTAL SERVICE AREA:
DEVELOPERS AREA:
LATECOMER'S AREA:
FEE COMPUTATION:
DEVELOPER'S CONTRIBUTION (verified from billings):
PORTION ATTRIBUTABLE TO DEVELOPER'S SUBDIVISION:
(Developer's % of projected tolal ERU's) X (Developer's ContribuUon)
36.23% X $266,096.45
Projected
ERU's
1,075
390
686
PORTION OF DEVELOPER'S CONTRIBUTION ELIGIBLE FOR REIMBURSEMENT:
(Latecome(s % of projected total ERU's) X (Develope(s Contribution)
63.77% X $266,096.45
LATECOMER FEE PER ERU:
(Eligible Reimbursement)
$169,692.20
(Latecomer's ERU's)
685.85
REIMBURSEMENT BASIS:
(Latecomer fee per ERU)
(% Developed Durrlng Payback Period)
Payback Period (years)
Development Percentage
68%
$247.42
ADMINISTRATIVE FEE:
(Reimbursement Basis)
$364.30
X
X
(110% - (10% Administrative Fee»
110%
Percent of
Total ERU's
100.00%
36.23%
63.77%
$266,096.45
$96,404.25
$169,692.20
$247.42
10
68%
$364.30
$400,73
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EXHIBIT D
REIMBURSEMENT SCHEDULE:
The developer paid the costs of instaling the sewer line, The Latecomer fee paid by
each parcel, or portion thereof, who connects to the subject sewer line will be paid
per the above agreement.
The fees assessed to each iatecomer shall be adjusted annually on October 1 st, at
an annual percentage rate of 6%.
The latecomer fees shall be:
Effective Date
October 1, 2003
October 1, 2004
October 1,2005
October 1,2006
October 1, 2007
October 1, 2008
October 1, 2009
October 1, 2010
October 1 , 2011
October 1, 2012
October 2,2013
Latecomer Fee per ERU
$400.73
$424.77
$441.76
$459.43
$477.81
$496.92
$516.80
$537.47
$558.97
$581.33
$604.58
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